Every state with a sales and use tax program taxes retail sales of tangible personal property. Since contractors convert such property into real estate (and realty generally isn’t subject to the tax), laws governing the timing and measure of taxes due on construction materials and fixtures can vary greatly from state to state. To further complicate matters, many states tax construction-related services as well. A contractor’s tax obligations may vary according to the types of property installed, the kinds of services provided, the nature of the purchasing entity, the structure and content of the contract, and a host of other factors. Consequently, contractors face particularly complex sales and use tax requirements, especially if they operate in more than one state.
Comments or questions may also be submitted to the featured sales tax specialist by viewing any of the linked posts (below) and using the on-page "Comment" feature (or other posted contact options), subject to disclaimer at bottom of page. Additional contact options are also available on the blogger's associated Firm Profile.
- Construction Contractors - Specific State Reviews
- Construction Contractors as Consumers When Installing Property of Others
- Arizona's New Contractor Tax Rules: Watch for Misleading Terminology!
- Contractors: Watch Out for Arizona Tax Changes
- Construction Contracts with Exempt Entities (State Breakdown)
- Supporting Your Exemptions: Acceptable Documentation
- Common Construction Exclusions and Exemptions
- Construction Contractors as Manufacturers of Fixtures and Materials
- Construction Contracts: Which States Tax Installation Labor?
- Repairs and Maintenance: Which States Tax Construction Services?